Collection Of Review Fees Under Scrutiny In City Of South Lyon
March 8, 2018
There appears to be some discrepancies when it comes to collecting review fees in the City of South Lyon.
Police Chief Lloyd Collins is serving as interim city manager while Lynne Ladner is on her third, unspecified medical leave. Collins recently reported to council that at the end of the last fiscal year, Ladner allegedly directed city auditors to write off $50,000 that wasn't billed or collected for different review fees. The fees are associated with building construction or other work that requires a review by consultants. Since the fees were not collected, the city was stuck with the bill. Fees are typically collected to cover the expenses and put into an escrow account, but that has apparently not been happening in the City. The South Lyon Herald quoted Collins as saying there is $38,406 in fees that haven't been billed or collected during the current fiscal year. Collins questioned why the fees were not being be collected or billed accordingly, and immediately brought the issue before council. He had only been serving in the interim role for about two months before making the discovery. In speaking with former employees and others, Collins said it appeared no one was ever directed to take over those duties.
The City has been dealing with some pressing budget issues and unfunded pension liabilities, which Ladner was supposed to handle. That’s in addition to negotiations with employee labor unions and shifting to a defined contribution pension plan for new hires. It’s unclear how long Ladner will remain on leave, as she was expected to return in February but that has now reportedly been extended to June. (JM)